Obamacare Excise Tax

February 25, 2014

The purpose of this Client Alert is to call to the attention of clients, large and small, one significant and undisputed tax fact in the highly publicized Hobby Lobby Stores, Inc. v. Sebelius case--employers, large and small, which provide group health plan benefits to their employees are at risk for a significant excise tax if their plan fails to provide all of the health care benefits mandated under Obamacare, a number of which first became effective on January 1, 2014. Using Hobby Lobby as an example, the company could face millions in excise tax because its group health plan does not offer four of the 20 mandated forms of birth control. We therefore urge clients, large and small, to verify with their insurance company (or any other organization that designed their group health plan) that their plan provides the health care benefits mandated by Obamacare, including those which became effective on January 1, 2014. Please contact Jan Marsh (678.336.7135) if you would like to discuss.

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